The pandemic has brought digital transformation into the spotlight, with firms accelerating the adoption and implementation of cloud-based solutions and other more flexible technologies to support a rapid increase in remote working. However, integrating these new solutions with existing systems is far from straightforward.
Furthermore, banks and corporates alike are dependent on constantly evolving connections across their ecosystems, with trading partners, vendors, clients, regulators, fintechs and more. They are facing data and connectivity requirements in different formats and structures, which are changed or updated at frequent intervals. New industry standards, such as the SWIFT ISO 20022 migration, increase the workload further.
Ultimately, this means that many firms are struggling to build and maintain connectivity in a way which works for their business.
Managed internally, connectivity is an ongoing process which demands significant levels of time, specialist skills, and resources. It also requires regular upskilling, funding, and maintenance and updating of systems and processes.
Up until recently, firms may have chosen to manage connectivity in-house. However, the pace and scale of digital transformation and the rapid emergence of new technologies have elevated the importance and complexity of connectivity significantly.
Organisations must ask themselves – is this really a core competency that we want our teams to specialise in?
For most firms, the answer should be no. Tackling connectivity in-house drains time and money from higher-value, revenue-driving activities. Seeking a fully managed service option from true connectivity specialists is far more effective and efficient.
The right third-party expert can take the connectivity burden from you, managing everything from message transformation, data migration and integration, to keeping your systems up to date as new requirements emerge. The key to managing connectivity efficiently is a balance between off-the-shelf and customised solutions. A good partner can provide ready-made connectivity for your standard requirements, but also has the deep domain expertise to quickly build custom options when required – if they haven’t seen your exact scenario before they’ve seen something very similar, and can draw on their knowledge and experience to efficiently solve the problem for you.
As digital transformation gathers pace, so does the need for control over your processes and assurance that they are performing as expected. Enhanced reporting and monitoring can give you much-needed oversight over your operations and data as you grow at speed, avoiding unseen connectivity breakdowns occurring in the background when new systems or technologies are introduced.
Ultimately, banks and corporates must now seek to apply the same outsourcing model used for other non-core competencies to connectivity – or risk being left behind.
To discover how Gresham is meeting the connectivity needs of financial institutions and corporates across the globe, contact our team here.